A rapid increase in the availability of credit to previously underserved borrowers is likely ________.

Question

Quizplus · Accepted Answer

Financial liberalization typically leads to greater access to credit for previously underserved borrowers, as regulations that may have previously restricted lending are relaxed or removed. This can help improve the allocation of capital to productive uses and stimulate economic growth. Microcredit can also play a role in providing access to credit for underserved borrowers, but it is typically targeted at very small loans and may not have as large-scale an impact as financial liberalization. Deleveraging, on the other hand, refers to a reduction in overall levels of borrowing and is unlikely to lead to an increase in credit availability.

A Rapid Increase in the Availability of Credit to Previously